Plummer industries plans to issue a 100 par perpetual


Question: Plummer industries plans to issue a $100 par perpetual preferred stock with a fixed annual dividend of 12 percent of par. It would sell for $96.60, but flotation costs would be 5 percent of the market price. What is the percentage cost of preferred stock after taking flotation costs into account? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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Finance Basics: Plummer industries plans to issue a 100 par perpetual
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